Published on 12/19/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $905,000 autocallable contingent income barrier notes on Dow, Russell, Nasdaq
By Kiku Steinfeld
Chicago, Dec. 19 – HSBC USA Inc. priced $905,000 of autocallable contingent income barrier notes due Dec. 13, 2024 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 6% if each index closes at or above its coupon barrier level, 75% of its initial level, on the observation date for that period.
After one year, the notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date other than the final one.
The payout at maturity will be par plus the final coupon, if any, unless any index finishes below its 60% trigger level, in which case investors will be fully exposed to the decline of the lowest performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | Russell 2000 index, Dow Jones industrial average, Nasdaq-100 index
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| Amount: | $905,000
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| Maturity: | Dec. 13, 2024
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| Coupon: | 6%, payable quarterly if each index closes at or above coupon barrier on observation date for that period
|
| Price: | Par
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| Payout at maturity: | Par plus any coupon unless any index finishes below its trigger level; otherwise, exposure to decline of worst-performing index
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| Call: | After one year, at par plus coupon if each stock closes at or above initial price on any quarterly observation date other than final one
|
| Initial level: | 27,881.72 for Dow, 8,354.293 for Nasdaq and 1,631.714 for Russell
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| Coupon barrier level: | 20,911.29 for Dow, 6,265.71975 for Nasdaq and 1,223.7855 for Russell, 75% of initial level
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| Trigger/barrier level: | 16,729.032 for Dow, 5,012.5758 for Nasdaq and 979.0284 for Russell, 60% of initial level
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| Pricing date: | Dec. 10
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| Settlement date: | Dec. 13
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.625%
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| Cusip: | 40435UU85
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